NFTs, or non-fungible tokens, are minted pieces of digital files that are unique and owned by a private person. NFTs can be anything—a photo, a video, an album of music, anything that can be minted as a digital file. While this may seem strange and unnecessary, it is changing the way people think about collectibles. Before NFTs, collectibles were viewed as physical, tangible things that are worth money because of their rarity, uniqueness, and craftsmanship. Now they don’t need to be bought in a collectibles store, these items can also be intangible content. Here are a few ways NFTs are changing the world of collectibles.
They’re Purchased with Cryptocurrency
NFTs are typically purchased with cryptocurrency, which makes them distinct from physical collectibles. Tangible collectibles like magazines, statues, trading cards, sports memorabilia, posters, and more can all be bought with cash, debit, or credit, but NFTs are different because everything about them is digital. This transforms the idea of what a collectible is. Perhaps collectibles aren’t something to hold, or covet, or hang on a wall, maybe they are something rare that is owned—not admired. However you view NFTs, they are changing what it means to own a piece because it doesn’t include a tangible item.
They Have a Certificate of Authenticity
NFTs, like a lot of physical collectibles, come with a certificate of authenticity. This is perhaps more important than a certificate for a physical item because it guarantees that no one else will have a copy of the item. It cannot be replicated. This is why people are buying them for large sums of money. NFTs are surely an experiment that doesn’t necessarily have an end-game, but they are going mainstream because digital files can finally be authentically unique. It is essentially collecting for the digital connoisseur.
They Are Taking the Place of Physical Collectibles
Collectible makers are taking notice of the revolution. The Esports organization Dignitas has partnered with Zytara Labs to make digital playing cards. Zytara makes NFTs with musicians, brands, athletes, and other entertainment names for fans and customers. This suggests that other corporations are going to make digital versions of otherwise tangible collectibles. What NFTs are showing collectors and producers alike is that anything can be made into a rare collectible. It can be completely digital. No longer is it necessary to make collector’s items physical pieces.
The Market is Worth Billions of Dollars
Even though NFTs are a new thing, the market is already worth billions of dollars. Single pieces of digital artwork have sold for millions, including “Everydays: The First 5,000 Days” at $69.3 million. While some argue that this is comparable to a financial bubble that will burst, the entire economy is based on perceived meanings of value. NFTs are valuable because people put value onto them. There is nothing to be gained from buying an NFT besides the ability to enjoy the piece of artwork or content, the fact that the person owns it, and can eventually sell it to someone else.
Anyone Can Create an NFT
One of the most interesting aspects of the NFT revolution is that anyone can create one. It doesn’t cost much to get a digital piece minted and authenticated. You can create an NFT out of just about anything. It doesn’t take much to do it, but if there is perceived value you can make some money on a digital file. It can be anything. That’s what is so exciting about it.
It’s no secret that NFTs have changed the worlds of cryptocurrency, collectibles, and the digital landscape in general. Is it just a fad? That remains to be seen. What’s undeniable, however, is that it has augmented our view of collecting and what it means to be a collector. The possibilities are endless.
Who knows how the concept will evolve over time. Whether it has to do with art, digital content, trading collectibles, or something else, many people are convinced that NFTs will be the collecting of the future. More and more people will become familiar with the concept and the market will fluctuate. One thing is for sure—NFTs are changing what it means to collect and be a collector.
Ryan Beitler is a writer, journalist, and blogger who has written about tech for a variety of publications.
